Bayberry Place Townhomes
ASSIGNMENT TYPE:NEW ACQUISITION PROPERTY MANAGEMENT
ASSIGNMENT LENGTH:2007 – CURRENT
Bayberry Place Townhomes is located in the northeast Columbus submarket. The location offers quick access to local Interstates (270, 71 and 70), the Easton Lifestyle Mall and is 15 minutes to Columbus’ CBD. The property consists of 296, two bed, one bath townhome apartments offering between 800 and 1,000 square feet of living space. Unit amenities include washer/dryer hookups, private patios, finished basements and 2 parking spaces. Bayberry Place Townhomes is a “C” class community in a “C+” location. The property had significant deferred maintenance allowing for Ackermann Group to negotiate a reduced purchase price.
Invest $780,000 in immediate capital improvements focused on enhancing curb appeal, eliminating costly recurring maintenance issues and reducing rising utility costs through reimbursement programs.The project consisted of repairing and replacing roofs, concrete walks and patios, fencing and asphalt; painting entry doors, remodeling the pool, landscaping and leasing office and installing a children’s playground.
THE ADDED VALUE:
The curb appeal improvements and operational advancements implemented in the first year allowed management to increase rent and implement utility reimbursements to capture significant water costs. In the first 12 months of ownership Ackermann Group improved Net Rental Income (net of: Bad Debt, Vacancy and Non-Revenue units) 7.6% for a Total Gross Income increase of 6.6%. Over the past 6 years, Total Gross Income has increased by 24.9% or an average of 4.2% per year. Net Rental Income has increased by $297,372 or 34% for an average of 5.7% per year. This has resulted in an increase of value of 27.24%and average annual Cash on Cash Return of 12.31%